Utilization of Domestic Timber in Japan - May 20, 2007

Background and Situation:
In 1998, the proportion of domestic plywood was only 26%, but by 2005, it had expanded significantly to 70%. During this period, the production volume of domestic coniferous plywood increased significantly, continuing to grow rapidly from 2001, and reached a record high in 2005. The following factors can be cited as the background for this rapid growth.

Decrease in Supply and Strengthening of Regulations for Tropical Timber:
Tropical timber, which had traditionally been used as the main material for plywood, saw a reduction in supply due to the strengthening of logging regulations for forest protection in supplier countries such as Malaysia and Indonesia. Additionally, in 2006, the Forestry Agency issued the "Guidelines for the Verification of Legality and Sustainability of Wood and Wood Products," which restricted the use of illegally logged timber. This strengthening of regulations led to a shift in plywood material demand from tropical timber to coniferous timber.

Impact of International and Domestic Markets:
The rise in coniferous timber prices in the international market and the depreciation of the yen also contributed to the promotion of domestic timber utilization. In particular, in Japan, the spread of earthquake-resistant buildings increased the demand for thick plywood for housing. In response to this increased demand, domestic manufacturers made capital investments and took measures such as shortening drying periods.

Improvement in Technology for Utilizing Thinned Timber:
Furthermore, in terms of securing plywood materials, technology for utilizing thinned timber and small-diameter wood improved. As a result, the number of manufacturers using thinned timber increased, leading to forest maintenance and revitalization of the forestry industry. Such technological advances have greatly contributed to the expansion of domestic timber utilization.

Summary:
The utilization of domestic timber contributes not only to the effective use of forest resources and environmental conservation but also to the promotion of domestic industries. The growing demand for domestic timber is an extremely important development for the forestry and construction industries as a whole.